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Calling for business unusual: reforming climate finance

Clare Shakya, Marek Soanes, Barry Smith

IIED Briefing, 4 pages

The climate finance system is failing to respond to the triple crises of poverty, climate and nature. Going further and faster on climate action requires a whole-of-society response and more, and better, climate finance that reaches local levels. So, what needs to change? This briefing sets out some principles for reforming the current climate finance system. These will help strengthen the quality of outcomes by incubating the delivery mechanisms needed to: provide climate advice and investment behind local priorities, help enterprises pivot towards climate-positive production and enable grassroots and civil society actors to work with communities to develop their own solutions. With the right support, governments can strengthen their institutions to incentivise robust, climate-informed decisions across society, enable convergence across delivery mechanisms, improve accountability and learn what works.

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IIED is researching the benefits and challenges of devolving development and climate finance to the local level, and is helping to build local-level capacity to access and manage resources.

More at www.iied.org:
Money where it matters: local finance to implement the Sustainable Development Goals and Paris Agreement

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